Functional Mushroom Market to Witness Remarkable Growth at a CAGR of 9.3% by 2021–2030

Surge in functional food&beverage product applications, rise in usage of plant-based ingredients in personal care & cosmetics, increase in health consciousness.

WILMINGTON, DE, UNITED STATES, November 12, 2025 /EINPresswire.com/ -- The global functional mushroom industry was generated $7.98 billion in 2020, and is estimated to reach $19.33 billion by 2030, witnessing a CAGR of 9.3% from 2021 to 2030.

Surge in functional food & beverage product applications, rise in usage of plant-based ingredients in personal care & cosmetics, and increase in health consciousness drive the growth of the global functional mushroom market. However, high prices of the products and low reproducibility hinder the market growth. On the other hand, rise in demand for organic reishi mushroom products and usage of mushrooms as a supplement to meat products present new opportunities in the coming years.

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The functional mushroom market is expected to witness significant growth due to rise in functional food & beverage product applications and increase in usage of plant-based ingredients in personal care & cosmetics.

There has been a trend and substantial growth in developing natural drugs to prevent and treat several immunological diseases over the last decades. The fruiting bodies of functional mushroom species have gained popularity as dietary supplements in China, Japan, North America, and other regions of the world. Furthermore, it has been used as a functional food to prevent and treat immunological diseases, owing to its bioactive constituents that are regarded to provide anti-cancer, anti-inflammatory, anti-tumor, anti-oxidant, immunomodulatory, immunodeficiency, and anti-fungal properties.

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Moreover, the demand for functional mushrooms as a key ingredient in several personal care products has also gained high traction. This is due to its excellent antioxidant, anti-aging, anti-wrinkle, skin whitening, and moisturizing properties. Consumers are increasingly inclined toward products manufactured using plant-based organic ingredients, instead of synthetically sourced. However, functional mushrooms products are high priced, and this factor is expected to hinder the functional mushroom market growth.

The market is segmented into product type, application, distribution channel, and region. On the basis of product type, the functional mushroom market report is categorized into Reishi, Cordyceps, Lion’s Mane, and others. By application, it is segregated into Food and Beverage, pharmaceutical, nutraceutical & dietary supplements, and personal care & cosmetics. According to distribution channel, it is divided into supermarket & hypermarket, specialty store, convenience store, and online stores. The market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

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Based on region, Asia-Pacific contributed to the largest share in 2020, holding nearly half of the total share of the global market, and is projected to maintain its lead position during the forecast period. However, North America is expected to register the largest CAGR of 10.0% from 2021 to 2030.

Leading players of the global functional mushroom market size analyzed in the research include Hokkaido Reishi Co., Ltd. (Japan), Real Mushrooms, Half Hill Farm Inc., Om Organic Mushroom Nutrition, Pan’s Mushroom Jerky, Four Sigmatic, Yuguo Farms, South Mill Champs, Banken Champignons Groep BV, and Swadeshi Mushroom Spawn.

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David Correa
Allied Market Research
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